Any current/future new fundraising through debt or equity?

Currently, no concrete proposals for inorganic expansion or fundraising through equity or debt have been disclosed. The company is expanding organically with planned capex of around INR100 crores for a new facility in Pune and INR35-40 crores for a facility in Stuttgart, Germany. Working capital loan has increased from INR489 crores to INR529 crores, primarily for business-related requirements. The management is focused on working capital efficiency and reducing working capital days, targeting around 60 days net working capital cycle. No factoring or bill discounting is being utilized currentl

Any current/future capex/capital investment/strategic investment?

Planned capex for the year is around INR100 crores for a new under-commissioning facility in Pune, expected to start trial production from Q3. Additional INR35-40 crores allocated for a new facility in Stuttgart, Germany, serving as a prototype and assembly center, also enabling expansion into repair services. Total capex spent in Q1 was INR70-75 crores, with another INR50-70 crores expected to be spent during the financial year. Capital allocation focuses primarily on building plant and manufacturing capability both in Pune and Stuttgart. Inorganic expansion is being evaluated, but currently

Future growth expectations in sales/revenue/volumes?

**FY25 Revenue Growth Guidance:** 45%-50% growth over previous year's INR3,000 crores target, aiming for around INR4,500 crores. **Quarterly Growth:** Focus on annualized growth; quarter-on-quarter revenue could be around INR1,000 to INR1,200 crores. **Order Intake:** Strong and increasing, with INR1,200 crores received in Q1 and a healthy pipeline expected to grow further. **Exports:** Expected to grow 20%-25% annually, targeting INR1,000+ crores (up from INR800 crores last year), with ramp-up from Q2 onwards. **Segments:** Consumer business forecasted to be about 40% of sales for the full ye

Future growth expectations in earnings/operating earnings/profits/EPS?

Syrma SGS aims for 40%-45% revenue growth in FY25 compared to FY24, targeting around INR4,500 crores in annual revenue. Operating EBITDA guidance is around INR310-325 crores for the full year, translating into sustainable margins of approximately 7% going forward. Management confident of achieving 7%+ operating EBITDA margins in the second half of FY25, supported by operational efficiencies and product mix normalization. Exports expected to grow 20%-25% annually, increasing their revenue share from 16% in Q1 FY25 to around 22%-25% for the full year. Consumer business margins remain low (sub-4%

Current/ Expected Orderbook/ Pending Orders?

Current order book as of June end stands at approximately INR 4,500 crores. Segment-wise order book breakup: - Auto segment: 23%-25% - Consumer segment: 38%-40% - Industrial segment: 22%-25% - Healthcare: 6%-7% - Remaining from IT and railways. Order intake for the quarter was about INR 1,200 crores. Quarterly order intake has been increasing (INR 800 crores in Q4 FY24; approx. INR 1,200 crores in Q1 FY25). Order intake mainly from auto, industrial, and consumer segments. The company expects the order pipeline to continue growing. New customers and order wins in smart metering and me

IN US

Syrma SGS Technology LtdQ2 FY25Industrial Manufacturing

Syrma SGS Technology Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,427P/E: 74.5Market Cap: ₹27.7K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→**FY25 Revenue Growth Guidance:** 45%-50% growth over previous year's INR3,000 crores target, aiming for around INR4,500 crores.
→**Quarterly Growth:** Focus on annualized growth; quarter-on-quarter revenue could be around INR1,000 to INR1,200 crores.
→**Order Intake:** Strong and increasing, with INR1,200 crores received in Q1 and a healthy pipeline expected to grow further.
→**Exports:** Expected to grow 20%-25% annually, targeting INR1,000+ crores (up from INR800 crores last year), with ramp-up from Q2 onwards.
→**Segments:** Consumer business forecasted to be about 40% of sales for the full year, with automotive expected to increase to 20%-25% from 16% in Q1.
→**Healthcare and Industrial:** Expected to increase, partially offsetting softer consumer revenue in subsequent quarters.
→**Long-term Objective:** Sustainable growth with consumer around 40%, non-consumer 60%, and exports eventually comprising one-third of revenue.

Margin guidance

Category 3

→Syrma SGS aims for 40%-45% revenue growth in FY25 compared to FY24, targeting around INR4,500 crores in annual revenue.
→Operating EBITDA guidance is around INR310-325 crores for the full year, translating into sustainable margins of approximately 7% going forward.
→Management confident of achieving 7%+ operating EBITDA margins in the second half of FY25, supported by operational efficiencies and product mix normalization.
→Exports expected to grow 20%-25% annually, increasing their revenue share from 16% in Q1 FY25 to around 22%-25% for the full year.
→Consumer business margins remain low (sub-4%), but higher-margin segments like automotive, industrial, and healthcare will drive margin expansion.
→Positive operating cash flows expected as exports and ODM scale up; focus on reducing working capital cycle to around 60 days enhances cash flow.
→Investments in Pune and Stuttgart facilities to support growth and operational capability, positioning Syrma for industry-plus growth trajectory.

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Fundraise plans

→Currently, no concrete proposals for inorganic expansion or fundraising through equity or debt have been disclosed.
→The company is expanding organically with planned capex of around INR100 crores for a new facility in Pune and INR35-40 crores for a facility in Stuttgart, Germany.
→Working capital loan has increased from INR489 crores to INR529 crores, primarily for business-related requirements.
→The management is focused on working capital efficiency and reducing working capital days, targeting around 60 days net working capital cycle.
→No factoring or bill discounting is being utilized currently, and there are no off-balance sheet receivables.
→The company emphasizes building future-ready infrastructure and leadership but has not indicated any imminent plans for fundraising via debt or equity.

Order book

Yes

→Current order book as of June end stands at approximately INR 4,500 crores.
→Segment-wise order book breakup:
→ - Auto segment: 23%-25%
→ - Consumer segment: 38%-40%
→ - Industrial segment: 22%-25%
→ - Healthcare: 6%-7%
→ - Remaining from IT and railways.
→Order intake for the quarter was about INR 1,200 crores.
→Quarterly order intake has been increasing (INR 800 crores in Q4 FY24; approx. INR 1,200 crores in Q1 FY25).
→Order intake mainly from auto, industrial, and consumer segments.
→The company expects the order pipeline to continue growing.
→New customers and order wins in smart metering and medical sectors noted.
→Anticipated consistent or increasing order inflow on a quarterly basis going forward.

Capex plans

Yes

→Planned capex for the year is around INR100 crores for a new under-commissioning facility in Pune, expected to start trial production from Q3.
→Additional INR35-40 crores allocated for a new facility in Stuttgart, Germany, serving as a prototype and assembly center, also enabling expansion into repair services.
→Total capex spent in Q1 was INR70-75 crores, with another INR50-70 crores expected to be spent during the financial year.
→Capital allocation focuses primarily on building plant and manufacturing capability both in Pune and Stuttgart.
→Inorganic expansion is being evaluated, but currently no concrete proposals or investments are on the table.
→Setting up of a subsidiary for adjacent category expansion (OSET) is under careful review, no capital allocation finalized yet.

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